Home / Knowledge / News / Apparel/Garments / Indian govt to revise FDI cap in some sectors next month
Indian govt to revise FDI cap in some sectors next month
26
Jun '13
The Government of India would revise foreign direct investment (FDI) caps for some sectors next month, Finance Minister P Chidambaram has said.
 
Last week, a Government Panel headed by department of economic affairs Secretary Arvind Mayaram suggested in its report that the FDI caps should be changed to three-tier structure of 49 percent, 74 percent and 100 percent, instead of the present four-tier structure of 26, 49, 74 and 100 percent.
 
Among other things, the panel suggested that the FDI cap in multi-brand retail trading (MBRT) should be raised to 74 percent.
 
In its report, the panel said on the basis of the principle of ownership and control, there needs to be only three categories. In those sectors where foreign ownership and control cannot be allowed, FDI can be permitted up to 49 percent with the definition of control.
 
In sectors or activities where ownership and control is not material, FDI up to 100 percent can be allowed. However, in some sectors where a degree of Indian participation is considered necessary, although foreign ownership and control is permitted, the FDI limit can be capped at 74 percent, the panel suggested.
 
The Department of Industrial Policy and Promotions (DIPP) will discuss separately with all Ministries and submit a note to the Cabinet for revision of FDI limit in some sectors, Finance Minister told reporters on the sidelines of an event organized by Crisil for the launch of its new Index.
 
The revision of upper limit in FDI is aimed at making the country more attractive to investors. While the Government has been successful in attracting FDI in single-brand retail, where up to 100 percent FDI is allowed, it has so far failed to evoke good response from multi-brand retailers.
 

Fibre2fashion News Desk - India


Must ReadView All

AEPC concern over apparel exports fall; envoys meet CEA

Apparel/Garments | On 17th Nov 2017

AEPC concern over apparel exports fall; envoys meet CEA

India’s Apparel Export Promotion Council (AEPC) has expressed concern ...

Moody's improves India's rating

Textiles | On 17th Nov 2017

Moody's improves India's rating

Moody's Investors Service has upgraded the Indian Government’s local...

Sweden in talks with Birlas for smart textiles project

Textiles | On 17th Nov 2017

Sweden in talks with Birlas for smart textiles project

Sweden is seeking a collaborative project with the Aditya Birla Group ...

Interviews View All

Divyesh Mashruwala
Akshar Industries

Surat dominates foiling, embossing and pleating

Varinder Singh Jawanda
Trendy Bharat

Sizing and fitting issues are inherent problems for companies expanding...

Karel Williams
Dow Microbial Control

'Silvadur is most rapidly adopted in areas where hygiene-conscious and...

Liz Manning

<div><b>Liz Manning</b>, Business Development Manager at Catexel, has...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Harsh Shah

Established in 1956 with a small beginning, Embee today manufactures a...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Eric Scholler
Groz-Beckert

The Indian market has huge potential in technical textiles, and by far,...

Mohammad Hassan
Biax Fiberfilm

About one in every 20 patients picks up an infection while hospitalised....

Pranav Mishra
Huemn

Designers Pranav Mishra and Shyma Shetty’s Huemn is known for its...

Sidharth Sinha
Sidharth Sinha

<b>Sidharth Sinha</b> has contributed to the successful rebirth and...

Aditi Somani
Aditi Somani

Aditi Somani specialises in luxury fusion wear with international cuts and ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

November 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
68.5%
No
12.4%
Skip
19.1%

Total Votes: 89

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.8%
No
30.3%
Skip
7.9%

Total Votes: 89

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
86.5%
No
10.1%
Skip
3.4%

Total Votes: 89

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
80.9%
No
9.0%
Skip
10.1%

Total Votes: 89


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search